Summary
EOG Resources Inc. (EOG) reported strong financial performance for the first quarter of 2021, reflecting a significant recovery in commodity prices compared to the prior year. Total revenues stood at $3.694 billion, a decrease from $4.718 billion in Q1 2020, largely due to lower gains from commodity derivative contracts. However, wellhead revenues surged by 31% to $3.190 billion, driven by substantial increases in crude oil, NGLs, and natural gas prices. Net income dramatically improved to $677 million ($1.16 diluted EPS) from a mere $10 million ($0.02 diluted EPS) in Q1 2020. This turnaround was primarily attributed to the rebound in commodity prices and a significant reduction in impairments, which heavily impacted the prior year's results. The company also maintained a strong balance sheet, with $3.4 billion in cash and cash equivalents and a debt-to-total capitalization ratio of 20% at quarter-end.
Financial Highlights
45 data points| Revenue | $3.69B |
| Operating Expenses | $2.76B |
| Operating Income | $932.00M |
| Interest Expense | $47.00M |
| Net Income | $677.00M |
| EPS (Basic) | $1.17 |
| EPS (Diluted) | $1.16 |
| Shares Outstanding (Basic) | 580.00M |
| Shares Outstanding (Diluted) | 583.00M |
Key Highlights
- 1Net income saw a significant turnaround, reaching $677 million ($1.16/share diluted) in Q1 2021, a substantial increase from $10 million ($0.02/share diluted) in Q1 2020.
- 2Total wellhead revenues increased by 31% to $3.19 billion, driven by a rebound in commodity prices, with average crude oil and condensate prices up 24% and natural gas prices up 210% year-over-year.
- 3Operating expenses decreased by $1.898 billion to $2.762 billion, primarily due to a significant reduction in impairment charges from $1.573 billion in Q1 2020 to $44 million in Q1 2021.
- 4The company maintained a strong liquidity position with $3.388 billion in cash and cash equivalents and a debt-to-total capitalization ratio of 20% as of March 31, 2021.
- 5Capital expenditures for the full year 2021 are projected to be between $3.7 billion and $4.1 billion, with a focus on U.S. crude oil drilling activity.
- 6EOG announced a regular quarterly dividend of $0.4125 per share and a special cash dividend of $1.00 per share, payable in Q2 2021.
- 7The company is proceeding with the sale of its China subsidiary for approximately $140 million, expected to close in Q2 2021.